[Aleenkagirlla]

Obama to Banks: We're Not Defaulting - FoxBusiness.com

While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn't raised, they privately have been telling top executives at major U.S. banks that such an event won’t happen, FOX Business has learned.

In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn't raised by the August 2 date Treasury Secretary Tim Geithner says the government will run out of money to pay all its bills, including obligations to bond holders. Geithner made the rounds on the Sunday talk shows saying a default is imminent if the debt ceiling isn't raised, and President Obama issued a similar warning during a Friday press conference after budget negotiations with House Republicans broke down.

[Abaronos]

What this means is that if congress does not authorize the rise of the debt ceiling by Aug 2, we'll stop cutting checks to pensioners and and govt workers before defaulting on our debt.

I wonder what the political implications are? That could really hurt the GOP if Obama and the Dems can successfully make the Republicans look at fault.

[Maserati]

We're covered until the 10th, according to the NY Times.

http://www.nytimes.com/2011/07/27/us...cs/27date.html

[strongjannabiz]

What this means is that if congress does not authorize the rise of the debt ceiling by Aug 2, we'll stop cutting checks to pensioners and and govt workers before defaulting on our debt.

I wonder what the political implications are? That could really hurt the GOP if Obama and the Dems can successfully make the Republicans look at fault.

The polling is already showing that. There's a 22% spread (43 v. 21) in who people approve of in their handling of the debt crisis-Obama v. GOP.

Poll: 71% shun GOP handling of debt crisis - Political Hotsheet - CBS News

This is what a Tea Party controlled House looks like. Boehner cannot even pass his own bill-and is "rewriting" it-and it's dead on arrival anyway since it won't pass the Senate and Obama won't sign it.

[bactrimtab]

There's a suggestion that the Fourteenth Amendment (which includes language related to honoring our debts) means that we constitutionally cannot default, but Obama's made it clear thus far that this is the House's' problem and they need to solve it.

[Tjfyojlg]

There's a suggestion that the Fourteenth Amendment (which includes language related to honoring our debts) means that we constitutionally cannot default, but Obama's made it clear thus far that this is the House's' problem and they need to solve it.

I imagine by the time that got worked out in the courts Congress would have come up with a deal to have mooted the case (unless SCOTUS granted an injunction). It'd be interesting to see...

The new harder to solve issue isn't default as much as S&P downgrading the debt anyways unless a certain amount is cut from debt.

[Diondra]

There's a suggestion that the Fourteenth Amendment (which includes language related to honoring our debts) means that we constitutionally cannot default, but Obama's made it clear thus far that this is the House's' problem and they need to solve it.

Constitutionalists will argue that it also doesn't permit Barry to issue NEW debt, which is a power delegated by the States solely to the federal Congress under Article I, Section 8 ..

(Not implying anything)